Exercise 3-19 a-b (Part Level Submission) The following data are taken from the comparative balance sheets...

Exercise 3-19 a-b (Part Level Submission)

The following data are taken from the comparative balance sheets of Cullumber Billiards Club, which prepares its financial statements using the accrual basis of accounting.

December 31	2020	2019
Accounts receivable from members	$13,800	$ 8,000
Unearned service revenue	16,300	24,200

Members are billed based upon their use of the club’s facilities. Unearned service revenues arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2020 income statement for the club showed that service revenue of $164,000 was earned during the year.

(a)

Prepare journal entries for each of the following events that took place during 2020. (Hint: You will probably find it helpful to use T-accounts to analyze these data.)

(1)		Accounts receivable from 2019 were all collected.
(2)		Gift certificates outstanding at the end of 2019 were all redeemed.
(3)		(a) An additional $39,000 worth of gift certificates were sold during 2020.
		(b) A portion of the above gift certificates was used by the recipients during the year; the remainder was still outstanding at the end of 2020.
(4)		Services performed for members for 2020 were billed to members.
(5)		Accounts receivable for 2020 (i.e., those billed in item [4] above) were partially collected.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles	Debit	Credit
1.

2.

3 (a)

3 (b)

4.

5.

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Expert Solution

S.no.	Accounts title and explanations		Debit $	Credit $
a.	Cash account			8000
	Accounts recievable			8000
	(for cash collected from members)

b.	Unearned service revenue		24200
	Service revenue				24200
	(for sgift certificates redeemed)

c-1	Cash account			39000
	Unearned service revenue			39000
	(for sale of gift certificates)

c-2	Unearned service revenue		22700
	Service revenue	(39000-16300)		22700
	(for sgift certificates redeemed)

d.	Accounts receivable (164000-24200-22700)	117100
	Service revenue				117100
	(for services provided on account)

e.	Cash account (117100-13800)		103300
	Accounts receivable			103300
	(for cash received on account)

ekkarill92 answered 2 years ago

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